Photo: Shutterstock.comKirkland to Lead Coal Giant Through Chapter 11 Proceeding
While Kirkland is advising Murray Energy, Davis Polk is representing an ad hoc lender group. The Chapter 11 filing is the latest sign that troubled coal companies continue to bring big business to law firm restructuring teams this year.
October 29, 2019 at 05:20 PM
2 minute read
Kirkland & Ellis and Davis Polk & Wardwell both landed work when the nation's largest privately held coal miner filed for bankruptcy protection Tuesday. It was the latest sign that troubled coal companies continue to generate significant business for Big Law restructuring teams this year.
Murray Energy Holdings, whose outgoing chief executive has been an ally and adviser to President Donald Trump on energy policies, filed Chapter 11 papers in the Southern District of Ohio.
The company, which estimated it has between $1 billion to $10 billion in liabilities, tapped Kirkland & Ellis as debtor's counsel. Dinsmore & Shohl will provide local counsel, according to court papers. Kirkland partners in the case include Nicole Greenblatt, Ross Kwasteniet, Joe Graham, Mark McKane, Ashley Gregory and Christian Nagler, while Dinsmore partner Kim Martin Lewis signed the bankruptcy petition.
In a press release, Murray said it had entered into an agreement with an ad hoc lender group, represented by Davis Polk & Wardwell, to handle more than 60% of the company's $1.7 billion in claims. The Davis Polk restructuring team includes partner Damian Schaible and associate Adam Shpeen. The finance team included partners Monica Holland and Jinsoo Kim.
No law firms were listed among the company's 50 largest unsecured creditors, according to Tuesday's Chapter 11 filing.
Robert Murray, the company's outgoing chief executive, donated to Trump's presidential campaign and pushed the president to provide more support to the coal industry. But despite a friendlier regulatory environment, the coal industry has continued to face problems, including competition from cheaper fuels.
At least seven coal companies have filed for bankruptcy protection this year, according to CNBC, as consumers shift to cleaner and cheaper sources of power such as natural gas and renewables. Other coal companies filing for bankruptcy in 2019 include Cloud Peak Energy, represented by Vinson & Elkins; Blackhawk Mining, with lawyers at Potter Anderson Corroon and Kirkland & Ellis; Cambrian Coal, working with Frost Brown Todd; and Blackjewel, which has been advised by Squire Patton Boggs.
Meanwhile, Murray Energy is the latest big case for Kirkland's bankruptcy and restructuring department this year. The bankruptcy powerhouse has recently handled filings for Toys "R" Us, Barneys New York and Forever 21.
Representatives at Kirkland, Davis Polk and Dinsmore declined to comment.
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